AO World valued at £1.2bn on stock market debut
ONLINE retailer AO World plc, today made its debut as a public company as shares began trading at 285p, giving the Bolton-based business a market value of £1.2bn.
The company will raise £60m to fund growth including expanding into Germany, while existing investors including founder and chief executive John Roberts, finance director Steve Caunce and original backers such as Cheshire-based entrepreneur Bill Holroyd, will share £363m.
After shares begin trading Mr Roberts – who quit his job and launched the business as a result of a £1 bet – will retain a 28.6% stake in the company. He previously owned around 40%.
Both he, Mr Caunce and other director/shareholders are subject to a 360-day lock-up, meaning they can’t sell any more shares in the company for this period unless demand is strong enough to trigger a green shoe arrangement – where a further 15% of equity will be available.
Mr Roberts said: “I am delighted that our initial public offering has been so well received by investors. They have understood our business model and our potential. We welcome them as shareholders.
“I have never been more excited about our business. We hope to continue to grow our market-leading position in the UK and we have theb opportunity to bring our business model and customer focus to the online European electricals market.
“Our obsession with customer service and the outstanding ability of our team leave us well positioned to deliver our vision for the future.”
The deal, the largest e-commerce IPO since Ocado in 2010, was led out of Manchester by Bod Buckby at investment bank Rothschild, which has been working with AO – formerly Appliances Online – for more than a year.
